Investing in TAX SAVING (ELSS) Mutual Funds?

Here are 3 common mistakes to avoid. 1. Making lumpsum investments at the end of the financial year. Investors tene to delay that tax saving investments till the end of the financial year and invest a lump sum amount in February or March. If the markets are on a higher side, you will end up buying mutual fund units at an expensive price which can impact your returns in the long term and can also be slightly risky. The suggestion is to plan the amount to be invested in section 80C and invest via a monthly SIP 2. Skipping ELSS SIPs The overall investment that was supposed to be made in tax saving SIPs reduces when one tends to miss the SIP installment. This will directly lead to higher tax liability. 3. Withdrawing ELSS investments immediately after the lock-in period Since ELSS schemes invests in market instruments it only makes sense to invest in ELSS with a least time duration of 5-7 years to enjoy higher returns and avoid losses arising out of volatility of the market. #investwithhely #helygadhecha #elss #taxsavingschemes #80c